Sono-Tek Corporation SOTK

Competitive advantage analysis · technology

Corporate Default
Overall moat score
62/100
Moderate

About Sono-Tek Corporation

Sono-Tek Corporation designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and research and development/other markets. The company offers custom-engineered ultrasonic coating systems; and nozzles and generators. It also provides integrated multi-axis coating systems, integrated coating systems, fluxing systems, OEM systems, and other related systems. In addition, the company offers … Full SOTK analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 74.2th percentile exceeds peers and WACC, demonstrating superior capital allocation.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
64

Where SOTK ranks in Scientific & Technical Instruments

Sono-Tek Corporation ranks #13 of 34 scored companies in Scientific & Technical Instruments by moat score — the top 38%. The widest moat in the group is Garmin Ltd. (GRMN) at 85/100.

Moat scores for companies ranked near SOTK in Scientific & Technical Instruments
# Company Moat score Rating
9 ESCO Technologies Inc. ESE 68/100 Moderate
10 Trimble Inc. TRMB 66/100 Moderate
11 Itron, Inc. ITRI 66/100 Moderate
12 Novanta Inc. NOVT 62/100 Moderate
13 Sono-Tek Corporation SOTK 62/100 Moderate
14 MKS Instruments, Inc. MKSI 60/100 Moderate
15 Electro-Sensors, Inc. ELSE 54/100 Moderate
16 MIND Technology, Inc. MIND 51/100 Moderate
17 Mesa Laboratories, Inc. MLAB 51/100 Moderate

See every General Corporate company ranked by moat score →

How SOTK scores on the Corporate Default defenses

Pricing Power

Score 64 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 59 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 62 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 71 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 63 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 52 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding SOTK's moat

What is Sono-Tek Corporation's moat score?

Sono-Tek Corporation (SOTK) scores 62 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #13 of 34 scored companies in Scientific & Technical Instruments, the top 38%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 33 companies in Scientific & Technical Instruments. Its strongest defense is Capital Efficiency (71/100) and its weakest is Scale & Market Position (52/100).

How does Sono-Tek Corporation compare with other Scientific & Technical Instruments companies?

Sono-Tek Corporation ranks #13 of 34 scored companies in Scientific & Technical Instruments by moat score. The widest moat in Scientific & Technical Instruments is Garmin Ltd. (GRMN) at 84/100. The companies ranked closest are Novanta Inc. (NOVT) at 62 just above it and MKS Instruments, Inc. (MKSI) at 60 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 33 companies in Scientific & Technical Instruments. The defenses are then weighted to produce the overall score out of 100.

Why is Sono-Tek Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Sono-Tek Corporation?

The Corporate Default template measures 6 defenses, and SOTK scores: Pricing Power (64), Cost Advantage (59), Customer Stickiness (62), Capital Efficiency (71), Resilience (63), Scale & Market Position (52). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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